A defamation plaintiff confronted with a qualified privilege can defeat it by proving common-law malice, and one recognized way of doing so is to show that the defendant acted out of personal spite or ill will. What, then, of a defendant who, in the same text exchange in which he transmitted the allegedly defamatory document, called the plaintiff a “shitty human” who “deserves all of it”? In yesterday’s opinion in Kakar v. Sanghani, the Court of Appeals of Virginia held that such evidence did not compel a finding of malice and affirmed a judgment for the defendant after a bench trial. The court held that qualified privilege attached to a chief executive’s communication to a major shareholder (a question on which Virginia case law had been silent) and that the circuit court was not plainly wrong in finding that the plaintiff failed to prove malice by clear and convincing evidence. The opinion clarifies that to overcome qualified privilege based on spite or ill will, spite must be the motive for the communication, not merely present. The statement must be “actuated by” spite or ill will “independent of the occasion.” Hostility that coexists with a legitimate purpose is not enough.
The dispute grew out of a corporate acquisition. In November 2020, Octo Consulting Group, LLC acquired Sevatec, Inc., a company founded and run by Arvinder “Sonny” Kakar, who joined Octo as Head of Strategy and Vice Chair of the Board. Mehul Sanghani was Octo’s CEO. The relationship soured over the name of the combined company: Kakar insisted that the two names be merged, and the board decided the name would remain “Octo.” According to Sanghani, Kakar began to disengage from his responsibilities, canceling meetings, failing to participate in board meetings, and mismanaging projects to which he was assigned. On one occasion, Kakar allegedly cursed and made obscene gestures at Sanghani and another company representative. On another, Kakar allegedly threatened to punch the chairman of Octo’s parent company in the face.
The Virginia Defamation Law Blog

